How to read a Texas Electricity Facts Label
Last updated 2026-10-21
Every Texas retail electricity plan has a standardized Electricity Facts Label (EFL). The headline price is calculated at exactly 1,000 kWh. The EFL shows how the price is built so you can calculate it at your own usage.
1. Every field on the EFL
| Field | What it means | Watch for |
|---|---|---|
| Average price per kWh at 500 / 1,000 / 2,000 kWh | Total bill ÷ kWh at exactly those three usage levels, including all REP and TDU charges | Big differences between the three columns mean credits, fees or tiers |
| Energy charge | REP's price per kWh | May have tiers (for example a higher price above 1,000 kWh) |
| Base charge | REP's fixed monthly fee | $0 to $15+; hurts low-usage homes most |
| TDU delivery charges | Your utility's (Oncor, CenterPoint, AEP Texas, TNMP, Lubbock Power & Light) fixed monthly charge plus per-kWh charge, passed through | Same on every plan in your area; changes are passed through even on most fixed plans |
| Usage / bill credit | A dollar credit when usage falls in a window, such as $100 at 1,000 to 2,000 kWh | Miss the window by 1 kWh and the credit disappears |
| Minimum usage fee | Fee if you use less than a threshold, such as $9.95 below 1,000 kWh | Small homes, apartments and mild months |
| Type of product | Fixed, variable or indexed | Variable prices can change monthly |
| Contract term | Months the price is fixed | What happens after (see renewal notice) |
| Early termination fee | Cost to cancel early: flat or per month remaining; median in our data $150 | Texas rules waive it if you move and give notice with a forwarding address |
| Renewable content | % of power matched with renewable energy credits, vs. the state average | "100% renewable" usually means RECs, not a direct supply |
| Time-of-use / free nights | Different prices by hour | Daytime price is often much higher than the 1,000 kWh average suggests |
| Other fees | Late fees, disconnect/reconnect, paper billing, deposits | Usually in the TOS, referenced on the EFL |
2. Worked example
An illustrative 12-month fixed plan:
- Energy charge: 14.5¢/kWh
- Base charge: $9.95/month
- TDU delivery: $4.50/month + 5.6¢/kWh
- Bill credit: $100 when usage is 1,000 to 2,000 kWh
Bill = $9.95 + $4.50 + kWh × (14.5¢ + 5.6¢) − credit (if 1,000 to 2,000 kWh). At 1,000 kWh: $9.95 + $4.50 + $201.00 − $100 = $115.45, or 11.5¢/kWh.
| Monthly kWh | Bill | Average price |
|---|---|---|
| 500 | $114.95 | 23.0¢ |
| 999 | $215.25 | 21.5¢ |
| 1,000 | $115.45 | 11.5¢ |
| 1,500 | $215.95 | 14.4¢ |
| 2,000 | $316.45 | 15.8¢ |
| 2,001 | $416.65 | 20.8¢ |
The advertised 1,000 kWh price is 11.5¢, but at 999 kWh you pay 21.5¢ and at 500 kWh 23.0¢. In a typical year, many Texas homes swing from under 800 kWh in spring to over 2,000 kWh in August, so most months fall outside the credit window. Credit plans work only if your use stays inside the window nearly every month.
To compare plans properly: pull 12 months of usage from Smart Meter Texas, compute each month's bill with the formula above, and add them up. Our Texas plan finder ranks plans at your usage.
3. Traps
- Bill credit cliffs: the price looks low at exactly 1,000 kWh and jumps above or below the window.
- Minimum usage fees (8% of listed plans): penalize low months.
- Tiered energy charges: cheap first block, expensive above it, or the reverse.
- Variable plans with a low first-month price.
- Free nights / weekends: free hours are offset by a high daytime price. Only works if you move 40%+ of use into the free window.
- Expiration: when a fixed term ends without a new choice, you roll onto a month-to-month plan, usually priced well above new-customer offers. Your provider must send an expiration notice in advance.
- "New customers only" pricing: existing customers may not get the advertised rate on renewal.
4. EFL, TOS and YRAC
- EFL: price and plan facts.
- Terms of Service (TOS): fees, deposits, billing, disconnection, how prices may change, renewal.
- Your Rights as a Customer (YRAC): PUCT-required summary of your protections, including the right to dispute bills, deferred payment plans, protections for critically ill and elderly customers, and how to file a complaint with the PUCT.
Providers must give all three before or at enrollment. You have 3 federal business days after receiving the terms to cancel a new contract without penalty.
5. Checklist before you sign
- Price at your actual usage each month, not just 1,000 kWh.
- Fixed rate, term 12 months or longer.
- No minimum usage fee if any month drops below the threshold.
- Bill credit window matches your use, or skip credit plans.
- Cancellation fee and whether it is flat or per month.
- Calendar reminder 30 days before the contract ends.
Browse current plans on Texas electricity plans, provider profiles on compare providers, and state averages on the Texas rates page. For deregulation in other states, see deregulation explained.
Frequently asked questions
Where do I find the EFL?
Every plan on Power to Choose and every retail provider's enrollment page links to its EFL, usually labeled "Electricity Facts Label" or "Fact Sheet". Texas rules require providers to give it to you before you enroll. Save a copy; the plan you sign up for is the one in that EFL version.
Why is the advertised price different from my bill?
The advertised price is the EFL's average price at exactly 1,000 kWh (or 500 or 2,000). If your monthly use differs, especially on plans with bill credits or minimum usage fees, your actual price per kWh will differ, sometimes by a lot.
Are TDU charges included in the EFL price?
Yes. The average prices include your utility's (TDU's) delivery charges, which every provider passes through. TDU charges are regulated and usually change in March and September; a fixed-rate plan may still pass those changes through, as allowed by the EFL.
What is a good price per kWh in Texas?
Compare against the market: across 954 current plans in our data, the median average price is 13.20¢/kWh at 1,000 kWh. The Texas residential average across all customers is 15.96¢/kWh (EIA, last 12 months).